Business Plan for an Insurance Undertaking

This chapter has the purpose of explaining the preparation of the Business Plan for an insurance undertaking. Drawing up a Business Plan foresees an analysis being carried out in five stages: 1. Opportunity assessment; 2. Strategy and vision definition; 3. Business model; 4. Economic and financial analysis (also called Business case) and 5. Master plan. Each of these stages is illustrated in detail and practical examples are provided. A methodology for preparing the Business case is described: The approach for the business case based on a logic tree is illustrated in detail, step by step. The two different alternative approaches used for preparing the budget: Zero-Based Budget (ZBB) and Continuity-Based Budget (CBB) are presented. At the end, a number of main templates for the budget of an insurance undertaking are presented: a sales Budget, an overhead costs Budget, a personnel costs Budget, a Budget for the ICT area and a Budget for the Finance area, etc. For each of them, the templates and the related tables are described in depth.